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House prices drop but interest rates rise
By JON HOYLE - The Dominion Post | Thursday, 20 March 2008
Home loan affordability for February deteriorated in Wellington, Christchurch and the Waikato-Bay of Plenty region while most of New Zealand improved marginally, according to the Fairfax Media Home Loan Affordability report.
The report noted that interest rate rises largely neutralised falls in median house prices.
The average two-year fixed mortgage rose almost a quarter of a per cent to 9.56 per cent in February, almost cancelling out the 0.7 per cent fall in the national median house price, now sitting at $337,500.
In Wellington, the median house price rose 2.5 per cent from January to February.
The median price was up 3.2 per cent in Christchurch and 4.1 per cent in Waikato-Bay of Plenty.
The report put annual median price growth in Wellington for the year to February at 1.4 per cent.
The proportion of the national median weekly take-home pay of $681 needed to pay the mortgage on a median-priced house dropped slightly from 80.8 per cent in January to 80.2 per cent. A year ago it was 74 per cent.
In Wellington, the report said that, even with a 20 per cent deposit, a single median take-home pay of $733.90 per week of a typical buyer is not enough to buy a median-priced house costing $375,800.
For typical Wellington buyers, it takes 82.9 per cent of a median income to pay the mortgage on a median-priced house, compared to 80.9 per cent in January and 76 per cent a year ago.
This would leave a disposable income of $125, $45 less than a year ago.
Affordability improved sharply in Northland because of a greater than average decline in house prices.
It improved marginally in Auckland, Gisborne, Hawke's Bay, Manawatu, Wanganui, Otago and Southland.
The Central Otago and Queenstown region took the dubious honour of being the only region needing more than 100 per cent of take-home pay - 132.8 per cent - to service a mortgage on a median-priced house.
Southland remained the most affordable, with 52.7 per cent of a take-home median pay needed to service the mortgage on a median house.
By JON HOYLE - The Dominion Post | Thursday, 20 March 2008
Home loan affordability for February deteriorated in Wellington, Christchurch and the Waikato-Bay of Plenty region while most of New Zealand improved marginally, according to the Fairfax Media Home Loan Affordability report.
The report noted that interest rate rises largely neutralised falls in median house prices.
The average two-year fixed mortgage rose almost a quarter of a per cent to 9.56 per cent in February, almost cancelling out the 0.7 per cent fall in the national median house price, now sitting at $337,500.
In Wellington, the median house price rose 2.5 per cent from January to February.
The median price was up 3.2 per cent in Christchurch and 4.1 per cent in Waikato-Bay of Plenty.
The report put annual median price growth in Wellington for the year to February at 1.4 per cent.
The proportion of the national median weekly take-home pay of $681 needed to pay the mortgage on a median-priced house dropped slightly from 80.8 per cent in January to 80.2 per cent. A year ago it was 74 per cent.
In Wellington, the report said that, even with a 20 per cent deposit, a single median take-home pay of $733.90 per week of a typical buyer is not enough to buy a median-priced house costing $375,800.
For typical Wellington buyers, it takes 82.9 per cent of a median income to pay the mortgage on a median-priced house, compared to 80.9 per cent in January and 76 per cent a year ago.
This would leave a disposable income of $125, $45 less than a year ago.
Affordability improved sharply in Northland because of a greater than average decline in house prices.
It improved marginally in Auckland, Gisborne, Hawke's Bay, Manawatu, Wanganui, Otago and Southland.
The Central Otago and Queenstown region took the dubious honour of being the only region needing more than 100 per cent of take-home pay - 132.8 per cent - to service a mortgage on a median-priced house.
Southland remained the most affordable, with 52.7 per cent of a take-home median pay needed to service the mortgage on a median house.
